SEC Proposes Regulation Crypto Assets Framework for Token Fundraising
The US Securities and Exchange Commission (SEC) has proposed Regulation Crypto Assets, a framework that would create purpose-built exemptions for certain token fundraising transactions.
The proposal, released on August 18, 2026, aims to provide clarity in the regulatory environment for crypto projects in the United States. It creates three main pathways for issuers: startup exemption, fundraising exemption, and investment contract safe harbor.
The startup exemption allows an issuer to raise up to $5 million over a period of four years with principles-based disclosures and public filings at the beginning and end. The fundraising exemption has two tiers: Tier 1 permits offerings of up to $20 million in 12 months, while Tier 2 raises that limit to $75 million.
The investment contract safe harbor offers issuers a potential path beyond investment-contract treatment after managerial efforts end. However, CLARITY still matters because the broader market structure, CFTC authority, exchanges, custody, and DeFi remain unresolved. The SEC rulemaking may partially substitute for legislation, but congressional action would provide greater regulatory durability.